Virginia Code 55.1-1963: Insurance.
A. The condominium instruments may require the unit owners’ association, or the executive board or managing agent on behalf of such association, to obtain:
Terms Used In Virginia Code 55.1-1963
- Common elements: means all portions of the condominium other than the units. See Virginia Code 55.1-1900
- Common expenses: means all expenditures lawfully made or incurred by or on behalf of the unit owners' association, together with all funds lawfully assessed for the creation or maintenance of reserves pursuant to the provisions of the condominium instruments. See Virginia Code 55.1-1900
- Common interest community manager: means the same as that term is defined in § Virginia Code 55.1-1900
- Condominium: means real property, and any incidents to or interests in such real property, lawfully subject to this chapter by the recordation of condominium instruments pursuant to the provisions of this chapter. See Virginia Code 55.1-1900
- Condominium instruments: means , collectively, the declaration, bylaws, and plats and plans recorded pursuant to the provisions of this chapter. See Virginia Code 55.1-1900
- Executive board: means an executive and administrative entity, by whatever name denominated, designated in the condominium instruments as the governing body of the unit owners' association. See Virginia Code 55.1-1900
- Officer: means any member of the executive board or official of the unit owners' association. See Virginia Code 55.1-1900
- Unit: means a portion of the condominium designed and intended for individual ownership and use. See Virginia Code 55.1-1900
1. A master casualty policy affording fire and extended coverage in an amount consonant with the full replacement value of the structures within the condominium, or of such structures that in whole or in part comprise portions of the common elements;
2. A master liability policy, in an amount specified by the condominium instruments, covering the unit owners’ association, the executive board, if any, the managing agent, if any, all persons acting or who may come to act as agents or employees of any of the foregoing with respect to the condominium, and all unit owners and other persons entitled to occupy any unit or other portion of the condominium; and
3. Such other policies as may be required by the condominium instruments, including workers’ compensation insurance, liability insurance on motor vehicles owned by the unit owners’ association, and specialized policies covering lands or improvements in which the unit owners’ association has or shares ownership or other rights.
B. Any unit owners’ association collecting assessments for common expenses shall obtain and maintain a blanket fidelity bond or employee dishonesty insurance policy insuring the unit owners’ association against losses resulting from theft or dishonesty committed by the officers, directors, or persons employed by the unit owners’ association, or committed by any common interest community manager or employees of the common interest community manager. Such bond or insurance policy shall provide coverage in an amount equal to the lesser of $1 million or the amount of reserve balances of the unit owners’ association plus one-fourth of the aggregate annual assessment of such unit owners’ association. The minimum coverage amount shall be $10,000. The executive board or common interest community manager may obtain such bond or insurance on behalf of the unit owners’ association.
C. When any policy of insurance has been obtained by or on behalf of the unit owners’ association, written notice of such obtainment and of any subsequent changes in or termination of the policy shall be promptly furnished to each unit owner by the officer required to send notices of meetings of the unit owners’ association. Such notices shall be sent in accordance with the provisions of subsection A of § 55.1-1949.
1974, c. 416, § 55-79.81; 2000, c. 906; 2003, c. 360; 2004, c. 281; 2007, cc. 696, 712; 2008, cc. 851, 871; 2019, c. 712.